With prices of top IT stocks coming off, the S&P BSE IT index slumped by 0.95 % by ending at 10,051 points.

Stock prices of most IT companies fell on Friday after Tata Consultancy Services (TCS) posted first- quarter profit that missed the analyst estimates. Shares of TCS slumped 1.85% on Friday closing the session at Rs 2,398.80 on the Bombay Stock Exchange. The stock hit its intra-day low at `2,376.10. Revenues of TCS were in line with forecasts at Rs 29,584 crore, although these were a shade lower than in the March quarter. After TCS weak performance in the June quarter, Infosys on Friday said its first-quarter profits grew to Rs 3,483 crore and revenue grew to Rs 17,078 crore. However, the stock ended the session 0.44 % lower at Rs 972.05 a share. With prices of top IT stocks coming off, the S&P BSE IT index slumped by 0.95 % by ending at 10,051 points.

Datamatics Global Services, MIC Electronics, Majesco, Subex, Tanla Solutions, Zen Technologies, Sasken Technologies, Quick Heal Technologies, D-Link, Cigniti Technologies were among the losers. Prices of these stocks fell anywhere between 3.98 and 1.70 % on Friday. IIFL in a report said that Q1FY18 results season would to start on a soft note, largely led by slower-than-expected ramp-up in IT spending, primarily in the BFSI vertical.

“Several companies, although reaffirming the full-year outlook, have suggested slower growth acceleration in 1Q, indicating it could be due to delays in project ramp-ups,” added IIFL in a report. Wipro is going through challenges in the healthcare, communication and India & ME markets, HCL will likely suffer rampdowns in the India business alongwith with the revenue impact of slower deal closures in IMS in Q4FY17, and Tech Mahindra will need to grapple with the ramp-downs associated with Comviva and LCC, according to a report by ICICI Securities.

“We expect the top 5 companies within our coverage universe to post CC growth of just around 1.2% q-o-q on an organic basis in Q1FY18 – which would be the weakest Q1 since Q1FY13,” ICICI Securities report. In an earlier interview with FE, E Prasanth Prabhakaran, senior president & CEO (brokerage), Yes Securities, said that Information Technology is one of the sectors that investors should stay away from for at least the next three quarters.